Large-size TFT-LCD panel shipments grow but revenues fall in 2008

Large-size TFT-LCD panel shipments in the fourth quarter 2008 reached 93.5 million units, a decline of 19% on quarter and 17% on year, according to research firm DisplaySearch. Due to drastic cuts in panel prices, large-size TFT-LCD panel revenues fell 33% on quarter and 48% on year to US$12 billion. Slow market demand in the fourth quarter 2008 led to reductions in capacity utilization across all applications.

DisplaySearch also revealed the total shipments of large-size TFT-LCD panels of 439 million in 2008, 11% growth from 2007. Shipments of panels for notebook PCs grew by 22% on year, and shipments of TV panels grew by 20% on year. If LCD monitor panels smaller than 26-inch for use in LCD TVs are included, LCD monitor panel shipments were basically unchanged from 2007 to 2008. However, excluding 26-inch and smaller monitor panels used for TVs – a segment that grew 54% on year – shipments of LCD monitor panels declined 2% on year.

Large-size TFT-LCD revenues reached US$72 billion in 2008, a 1% decline from 2007. All but three of the 19 large-size TFT-LCD panel makers saw revenues decline from 2007 to 2008. Samsung Electronics' large-size TFT-LCD revenues grew by 9% on year, Chi Mei Optoelectronics (CMO)'s by 10% and Sharp's by 17%. The other top producers had yearly revenue declines, including LG Display (LGD) down 2% and AU Optronics (AUO) down 12%.

In 2008, Samsung ranked first in large-size TFT-LCD panel revenues with sales of US$18.5 billion and a 25.7% revenue share. LGD was second, with US$14.6 billion in revenues and a 20.3% sales share. AUO was number three at US$12.3 billion and a 17.0% share. In 2008, Samsung also took first place in unit and area shipments. LGD and AUO were second and third, respectively. Taiwan remained the largest supplier of large-size TFT-LCD panels in 2008, but its unit share fell to 44.1% from 47.2% in 2007. Korea's share grew from 40.3% in 2007 to 43.5% in 2008.

Shipment rankings by application varied. Samsung led in LCD monitor panel shipments, with a 17.6% market share, followed closely by CMO with 17.5% and LGD with 17.0%. LGD led in shipments of notebook PC panels, with 30% share, closely followed by Samsung with 29%. AUO was number three with 21% share. Not including 26-inch and smaller LCD monitor panels used for LCD TV, Samsung led TV panel shipments with 22%. LGD followed at 20%, and CMO ranked number three with 18.4%, followed closely by AUO with 18.3%.

DisplaySearch forecasts that industry utilization rates will be less than 60% in the first quarter this year. Shipments for large-size TFT-LCD panel will show a 10% decline on quarter in the first quarter this year; LCD monitor panels will decline by 9%, notebook PC panels by 11% and LCD TV panels by 10%. "Other applications" is the only sector expected to have quarterly growth, up 8%, according to panel makers' shipment targets for the first quarter this year.

Source: DisplaySearch, compiled by Digitimes, February 2009

Source: DisplaySearch, compiled by Digitimes, February 2009

Source: DisplaySearch, compiled by Digitimes, February 2009